Baku Edition vol 13,  week 9  
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Alternative Way of Deliveries of the Azerbaijani Gas Defined
February 08, 2010 14:11 PM


A .Korotkov (Zerkalo)

The main stream of the Azerbaijani natural gas can bypass Turkey. We will mark that for today Iran has already expressed desire to gain to 5 billion cubic meters of natural gas, and Russian "Gazprom" has declared readiness to gain all volume of the free gas offered by Azerbaijan.
Undoubtedly, the government of Azerbaijan does not hasten to accept the offer of Russia and Iran and still has hopes of deliveries of the main stream of the Azerbaijan gas to the European consumers with transit through Georgia and Turkey.
Azerbaijan is ready to complex solution of all questions of cooperation with Turkey in gas area. As the president of the State Oil Company of AZERBAIJAN (SOCAR) Rovnag Abdullayev informed, now the package of agreements on intentions is discussed with Turkey. "It includes 10 questions: the question of the price of gas on the first and second phases of development of gas condensate "Shahdeniz" field, question of the transit fee for the Azerbaijani gas, etc. It still is a subject of negotiations and defines our intentions for 30 years ahead", - R. Abdullayev said.
He disagreed with statements about negotiation of separate questions that were presented by the Minister of Energy of Turkey Taner Yildiz. "We will decided everything by the common package. If we do not accept this package, no decisions from a package will be made", - R. Abdullayev said.
The core negotiator with SOCAR will be Turkish monopoly Botas. While Azerbaijan delivers to Turkey gas with "Shahdeniz" at the price of 120 dollars for 1 thousand cubic meters (Fineko/abc.az.)
However, Azerbaijan has the alternative way of transportation of the main stream of the Azerbaijani gas to Europe bypassing Turkey as well.
Romania presented Azerbaijan specific proposals on deliveries of the Azerbaijani compressed gas through Georgia and its implementations in the European market after decompression. As R. Abdullayev informed, these offers were also provided by the Minister of Economics, Trade and Business Environment of Romania Tudor Sherba.
"The workgroup is created for their studying. We are ready to consider offers after their technical substantiation. We have similar offers and substantiations from Bulgargaz as well", - R. Abdullayev said. The choice in favor of these projects depends on economic efficiency.
Thus there are two variants of delivery - LNG and SNG. The first needs factory building on erduction, for the second - it is enough to compress gas in tankers. "Offers are made about delivery from 7 to 20 billion cubic meters of gas per year. Still there is a consideration of primary offers", - R. Abdullayev marked. T. Sherba is in Baku from February 1 till February 5 (Fineko/abc.az).
We would remind that one of these days there were held negotiations between the government of Azerbaijan and Greece concerning deliveries of the Azerbaijani gas.
Azerbaijan considers Europe as one of priority directions for export of the Azerbaijani gas which will be extracted within the limits of development of "Shahdeniz" field, R. Abdullayev declared at the meeting with the Chairman of Board of Greek Gas Corporation DEPA Harry Sachinis on Monday in Baku ("Interfax-Azerbaijan"). According to the information published on the official site of the SOCAR, possibility of short-term and long-term gas cooperation between Azerbaijan and Greece was discussed at the meeting.
"During the meeting R. Abdullayev marked that mutual relations have strengthened between two countries for the last years, and in development of this process the positive role play also DEPA and SOCAR", - it is marked in the information.
Head of SOCAR emphasized that Azerbaijan for short period has turned from the gas importer to the exporter. "Gas from Azerbaijan is exported now to four frontier countries (Georgia, Russia, Turkey and Iran - IF). For Azerbaijan one of priority directions for export of gas which will be extracted in frames of "Stage-2 "of development by "Shahdeniz" field, are the European countries", - R. Abdullayev marked.
H. Sachinis in turn highly appreciated level of mutual relations between DEPA and SOCAR. He has expressed confidence of that, as present visit to Baku Greek delegation will serve development of mutual relations. H. Sachinis also emphasized that Greece repeatedly expressed the interest in purchase of Azerbaijani gas.
The developmental contract of "Shahdeniz" filed was signed in Baku on June 4, 1996. Participants of the project are: BP (the operator - 25,5 %), Statoil (25,5 %), SOCAR (10 %), LUKoil (10 %), NICO (10 %), TotalFinaElf (10 %) and TPAO (9 %). By an initial estimation of BP Company, reserves of "Shahdeniz" field are estimated in 625 billion cubic meters of gas and 101 million tons of condensate. The maximum gas production in frames of "Stage-1" is expected at level of 8,4 billion cubic meters of gas per year and 2 million tons of condensate, at further stages of development - about 16 billion cubic meters of gas per year.
In frames of "Stage-1" agreements on sale of gas are carried out into with Turkey, Azerbaijan and Georgia. For export of the Azerbaijani gas to Turkey, the South Caucasian pipeline (Baku-Georgia-border with Turkey) with length of 690 km (442 km - on territories of Azerbaijan and 248 km - in territory of Georgia) is constructed. The gas production beginning in frames of "Stage-2" is expected not earlier than 2015.
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